Fiscal Cliff deal good for Iowa ethanol production

The fiscal cliff deal means good news for ethanol and wind energy producers in the nation.

Iowa is considered a leading producer of


and the new deal will extend tax credits to that industry that will continue to encourage innovation.

The new bill will extended $1.01 per gallon tax credit for

ethanol produced

from corn plants, grasses or algae sources.

Ethanol producers will be allowed to continue to depreciate equipment for new plants that start service in 2013.

Biodiesel production

tax incentives will also be extended for two years.

Tax production credits for any new wind facility under construction in 2013 have also been extended until the end of the year.